What lenders look for in a flip
Securing finance for a flip is about presenting a clear, low-risk case to the lender. I help you package your application to tick all the right boxes.
Finance for Property Flipping
As a specialist mortgage adviser for Kiwi property traders, I structure smart funding solutions that give you the speed and agility to secure and profit from your next project.
Financing your next flip
In a dynamic property market, speed is your greatest asset. Property flipping, which is the art of buying, renovating, and selling for a profit, presents a powerful wealth creation opportunity. However, securing the right finance is often the biggest hurdle that trips up aspiring and even experienced investors.
Standard home loans from your main bank are designed for owner-occupiers, not for short-term, high-turnover projects. They often involve slow approval times, rigid criteria, and a structure that drains your cash flow during the crucial renovation phase. Trying to fit a complex flip into a simple mortgage product can lead to missed opportunities, budget blowouts, and unnecessary stress.
That's where specialist advice becomes a game-changer. We understand the full scope of your project, including the purchase price, renovation budget, holding costs, and your target sale price. This allows us to approach a network of bank and non-bank lenders with a compelling proposal. We present you not just as a borrower, but as a savvy investor with a solid business plan, ensuring you get the flexible, purpose-built funding you need to succeed.
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A realistic budget
A detailed breakdown of all anticipated costs, including the purchase, renovation, professional fees, and a contingency fund (typically 10-15%).
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A clear exit strategy
A solid understanding of the target market and a data-backed After Repair Value (ARV) to prove the project's profitability.
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Relevant experience
While not always essential for smaller projects, demonstrating a history of successful renovations or project management strengthens your case significantly.
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A strong "A-Team"
Showing you have relationships with reliable builders, trades, and real estate agents gives lenders confidence in your ability to execute the project.
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Sufficient deposit and equity
Demonstrating you have the required deposit (often 30-40% for investment properties) or usable equity in your existing portfolio.
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The right property
Lenders favour properties in desirable locations with strong resale potential.
Important considerations for your flip
Before you make an offer, having a clear financial strategy is crucial. Here are key things we'll work through together.
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Funding the full project
Your loan needs to cover more than just the purchase price. We'll explore options to finance your renovation costs within the same loan structure.
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Minimising holding costs
Using an interest-only loan during the 3-6 month renovation and sale period can dramatically improve your cash flow and protect your profit margin.
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The power of pre-approval
In the competitive property market, having your finance pre-approved allows you to negotiate with confidence and act decisively when you find the perfect property.
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Accessing non-bank lenders
Don't limit yourself to one bank. Non-bank lenders often offer more flexibility, faster approvals, and products specifically designed for property investors.
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Planning for the unexpected
A solid contingency plan is non-negotiable. We ensure your funding structure has the flexibility to handle unforeseen challenges without derailing your project.
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